I am a little confused as Direct Raw Materials + Direct labour= Prime cost, however in this question it has prime cost as 900,000 and Direct Labour. What would be the correct way to calculate, the 3 parts to the question, as I am now confused since prime costs and direct labour are both included.

At a given level of Production, Biscuit Manufacturing has the following costs:

Prime Costs $900,000

Direct Labour Costs $200,000

Variable Manufacturing Costs $1,000,000

Fixed Manufacturing Costs $300,000

Calculate

(a) Direct materials used

(b) Total Manufacturing Costs

(c) Variable manufacturing overhead costs